Vossloh and VR Track, a subsidiary of the Finnish state-owned railway company VR Group, form two joint ventures. Together with the partner, Vossloh will operate three switch production locations as well as a long welded rail production. Vossloh will take on a 60 percent stake of each joint venture. Signing of the contracts took place in May, closing of the transactions will presumably be in the middle of this year. The estimated annual turnover of the two joint ventures amounts to EUR 20 million to EUR 30 million with operationally positive income contributions already in 2015.
With the joint ventures Vossloh considerably increases its value added in the Customized Modules business division in Finland and internationalizes the activities of the Lifecycle Solutions division into a market that is characterized by an elaborate railway investment strategy. Overall, the transactions follow the strategic goal of Vossloh to further strengthen its position in selected attractive rail infrastructure markets.
“By forming the joint ventures with VR Track, we are improving our access to the demanding Finnish market and lay an important foundation for accelerated growth in our core business divisions in Northern Europe. We look forward to further intensifying the co-operation with our experienced long-term business partner, VR Track”, Dr.h.c. Hans Martin Schabert, CEO of Vossloh AG said.
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